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A Resolution to Amend the Housing Forward Funding Grant Agreement for the Flexible Rental Assistance Program to Extend the Term of the Agreement from March 20, 2025, to December 31, 2025, and Authorize its Execution
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Introduction
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Housing Forward requested an amendment to extend the term of its funding grant agreement with the Village. Staff recommends extending through December 31, 2025. The amendment does not impact the amount of funds encumbered from the Housing Trust Fund. No new funds are being requested.
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Recommended Action
Adopt the Resolution.
Prior Board Action
The Board has taken the following prior action(s):
• RES 24-219: A Resolution Approving an Amendment to the Funding Grant with Housing Forward for Its Flexible Rental Assistance Program to Increase the Not-to-Exceed Amount from $251,341 to $340,913
• RES 23-114: Resolutions Awarding Funding Grant Agreements for Affordable Housing Projects Totaling $1,484,000 from the Housing Trust Fund and Authorizing Execution of the Agreements
Background
On March 20, 2023, the Village Board approved four agreements funding four projects totaling $1,484,000 from the Housing Trust Fund and authorized its execution of the agreements.
One of the four agreements was with Housing Forward, which was awarded a two-year funding grant agreement of $251,341 for the Flexible Rental Assistance Program (FRAP). This program serves households at or below 50% of the area median income, providing them with temporary rental support to prevent households from becoming homeless. It is a last line of prevention for households experiencing a housing crisis and who have exhausted other potential resources and do not qualify for traditional homelessness prevention assistance.
On June 4, 2024, the Village Board approved an amendment to the Housing Forward FRAP agreement, increasing the funding from $251,341 to $340,913. This action required no new money from the Housing Trust Fund, as the increase in funds was the result of a decrease and transfer of funds from the Crisis Housing and Rental Support Program.
On February 7, 2025, Village staff notified Housing Forward that at the end of 2024 there was $119,652.72 in unspent funds under the current FRAP agreement, with the current agreement ending on March 20, 2025.
Per the Housing Trust Fund Program Guidelines adopted by the Board at the September 16, 2024 meeting, an applicant can seek one extension for an approved project funded through the Housing Trust Fund. Housing Forward submitted a request to extend the term of the agreement from March 20, 2025, to December 31, 2025. This is the first extension request.
This extension does not increase the amount of funds available through the agreement. Per the Housing Trust Fund Program Guidelines, Housing Forward would not be able to seek another extension for this program. If they sought Housing Trust Fund resources to continue FRAP, they would need to submit a new application to the Housing Trust Fund. Staff anticipate bringing forward a discussion about continuing FRAP or similar programs through the 2026 budget process.
Timing Considerations
The current agreement with Housing Forward terminates on March 20, 2025. If the agreement is not extended, the program will end.
Budget Impact
There is no budget impact associated with this item as no new funds are being requested.
Staffing Impact
There is no staffing impact associated with this item. The item aligns with the department’s core service delivery.
DEI Impact
This program serves households at or below 50% of the area median income, providing them with temporary rental support to prevent households from becoming homeless. It is the last line of prevention for households experiencing housing crises and who have exhausted other potential resources and do not qualify for traditional homelessness prevention assistance.
Community Input
On March 12, 2025, the Housing Programs Advisory Committee heard a request from Housing Forward to extend the term from March 20, 2025 to December 31, 2025. HPAC discussed the request and was generally supportive though no official action was taken to recommend an extension. HPAC inquired whether the contract should be extended beyond December 31, 2025 to ensure full spend down. Staff will address HPAC’s inquiry by bringing forward a discussion about continuing FRAP or similar programs through the 2026 budget process.
Staff Recommendation
Staff are recommending that the Board adopt the resolution, thereby extending the agreement through December 31, 2025.
Advantages:
• This action ensures the continuation of an important homelessness prevention program in Oak Park.
Disadvantages:
• There are no disadvantages to this action.
Alternatives
Alternative 1:
The Board could choose not to extend the term of the agreement.
Advantages:
• This action frees up money in the Housing Trust Fund for allocation to other priorities.
Disadvantages:
• This action would end an important homelessness prevention program in Oak Park as the Village seeks to address growing homelessness in the community.
Anticipated Future Actions
Any potential continuation of the FRAP program beyond December 31, 2025, will occur through the 2026 budget process.
Prepared By: Jeffrey J. Prior, Neighborhood Services Program Manager
Reviewed By: Jonathan Burch, Assistant Village Manager/Neighborhood Services Director
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Resolution
2. Amendment
3. Housing Forward Extension Request